December 2012

December 2012

2013 Outlook

LIFE
4 Ways to Open Clients’ Eyes to the Power of Cash Value
I NG’s survey shows a large opportunity to connect life insurance to clients’ dreams, rather than their death.
By Kurt Fasen
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inancial professionals who want to deepen their relationships with clients may be overlooking an opportunity that’s hidden in plain sight: cash-value life insurance. That is because most clients probably have no idea that life insurance may help solve some of their most daunting financial challenges, from tending to aging parents, to sending a kid to college, to taking control of when and how they retire. A recent study by ING U.S., Insurance
Revealed, found that the most common reason to purchase life insurance – cited by half of the survey respondents – is to replace income or pay off debts. In other words, they are focused solely on the death benefit feature of a life policy. A far lower percentage – as low as 1 percent – saw life insurance as a means to achieve other financial goals. This blind spot is an opportunity for financial professionals to step up
and show how life insurance can meet a range of financial needs – while still providing the more obvious death benefit. And, take note: This ING U.S. survey data reflects the views of adults over 25 with an annual household income of $50,000 or more, which means they are probably in a category where life insurance can complement their financial portfolio. Cash value in life insurance policies
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InsuranceNewsNet Magazine » December 2012